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The 4 Benefits of Marketing Segmentation

Focusing on a Specific Market Can Provide a Business With Smarter Options

Targeted customersMarketing segmentation involves focusing your business’s marketing efforts on a specific subset of the purchasing public. Many companies believe in casting a wide net in order to try and attract as many customers as possible. In truth, focusing your efforts on those customers who make the most sense for your business will not only save you time, but money as well – all while improving your odds of closing more sales.

Here are four benefits to focusing your marketing efforts on a targeted audience.

#1 – Saves Your Company Money

When you try to market to everybody, you are more than likely spending much more money than you need to, and your sales results will tend to be scattered at best. But, when you practice marketing segmentation, you direct your financial marketing resources to those customers who are most likely to buy from you, so you are getting more mileage for your marketing dollar.

#2 – Improves Product Development

Rather than trying to please everybody, focusing on a targeted audience allows you to design and develop your products to better suit their needs. This means your product development team can work to service the needs of your core buyers, so your products can be as valuable as possible to your chosen market.

#3 – Keeps Your Business on Track

When a business tries too hard to serve a broad-based customer population, it can quickly lose sight of its primary objectives and goals. Before long, the company’s focus has shifted entirely, and it is no longer the same company as it was when it started. But, by being true to your brand and your company’s audience, you can keep your business on track so it can continue to improve, rather than being spread too thin.

#4 – Helps Your Business Identify Under-Served Markets

By focusing on your market’s needs first, it grants you the ability to identify under-served sub-markets within your industry. This helps you expand your brand’s offerings in a smarter and more effective way by developing adjacent products and services to satisfy those under-served niches.

Dave Donovan

Author:

Dave Donovan has written extensively for the web with a primary focus on articles targeting finance and business.